Ford CEO Condemns Trump's Selective Tariff Policy
In a bold move, Ford CEO Jim Farley has criticized President Trump's tariff plans for their unfair targeting of select automakers.
During Ford's Q4 earnings call, Farley warned that prolonged tariffs on imports from Mexico and Canada would devastate the industry, potentially wiping out billions in profits. However, he emphasized that other automakers importing cars from outside the US with no tariffs enjoy an unfair advantage.
"Why are Hyundai-Kia importing 600,000 units into the US with no incremental tariff, and Toyota able to import half a million vehicles with no incremental tariffs?" Farley questioned. "Millions of vehicles are coming into our country that are not being applied to these [tariffs]."
Farley argued that any tariff policy must be comprehensive to avoid cherry-picking and granting competitive advantages to foreign rivals.
While Toyota does pay a small 2.5% tariff on vehicles imported from Japan, it remains significantly lower than the tariffs facing other automakers. In contrast, Hyundai and Kia face no tariffs on Korean-made vehicles, which accounted for 67% of their US sales in 2023.
Farley's focus on fairness in tariffs aligns with his stance on ensuring that competitors face equal challenges. However, it may not resonate with Trump, who has prioritized border security and trade with neighboring countries.
Despite the tariff concerns, Ford believes it is well-positioned to weather potential trade wars with Canada and Mexico. The automaker has a strong US presence and builds its best-selling F-Series trucks domestically.
However, Ford is also facing other challenges, including missed profit guidance for 2023 due to concerns over market factors such as pricing, costs, and demand.